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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–1
Management HistoryManagement History
Management
Stephen P. Robbins Mary Coulter
tenth edition
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–2
Learning OutcomesLearning Outcomes
Follow this Learning Outline as you read and studyFollow this Learning Outline as you read and study
this chapter.this chapter.
2.1 Historical Background Of Management.
2.2 Classical Approach.Classical Approach.
2.3 Quantitative Approach.
2.4 Behavioral Approach
2.5 Contingency/Contemporary Approach
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–3
Historical Background ofHistorical Background of
ManagementManagement
• Ancient ManagementAncient Management
 Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)
 Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)
• Adam SmithAdam Smith
 PublishedPublished The Wealth of NationsThe Wealth of Nations in 1776in 1776
• Industrial RevolutionIndustrial Revolution
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–4
Exhibit 2–1 Major Approaches to ManagementExhibit 2–1 Major Approaches to Management
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Scientific ManagementScientific Management
• Fredrick Winslow TaylorFredrick Winslow Taylor
 The “father” of scientific managementThe “father” of scientific management
 PublishedPublished Principles of Scientific ManagementPrinciples of Scientific Management (1911)(1911)
Says “Management is a science. There is one
best way and one best person to do the task. I
love efficiency and I love to study people at
work. Management should be an academic
discipline.” (He had a point…)
His work influenced:
Bringing psychology into the workplace
Gantt Chart and planning
Harvard University Offering Management
Degree
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–6
Exhibit 2–2 Taylor’s Scientific Management PrinciplesExhibit 2–2 Taylor’s Scientific Management Principles
1. Develop a science for each element of an individual’s work, which
will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work
is done in accordance with the principles of the science that has
been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work for
which it is better fitted than the workers.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–7
General Administrative TheoryGeneral Administrative Theory
• Henri FayolHenri Fayol
 Principles of ManagementPrinciples of Management
• Max WeberMax Weber
 Developed a theory of authority based on an idealDeveloped a theory of authority based on an ideal
type of organization (bureaucracy)type of organization (bureaucracy)
 Emphasized rationality, predictability, impersonality, technicalEmphasized rationality, predictability, impersonality, technical
competence, and authoritarianismcompetence, and authoritarianism
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–8
Exhibit 2–3 Fayol’s 14 Principles ofExhibit 2–3 Fayol’s 14 Principles of
ManagementManagement
1.1. Division of workDivision of work
2.2. AuthorityAuthority
3.3. DisciplineDiscipline
4.4. Unity of commandUnity of command
5.5. Unity of directionUnity of direction
6.6. Subordination ofSubordination of
individual interestsindividual interests
to the generalto the general
interestinterest
7.7. RemunerationRemuneration
8.8. CentralizationCentralization
9.9. Scalar chainScalar chain
10.10. OrderOrder
11.11. EquityEquity
12.12. Stability of tenureStability of tenure
of personnelof personnel
13.13. InitiativeInitiative
14.14. Esprit de corpsEsprit de corps
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–9
Exhibit 2–4Exhibit 2–4 Weber’s BureaucracyWeber’s Bureaucracy
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–10
Quantitative Approach toQuantitative Approach to
ManagementManagement
• Quantitative ApproachQuantitative Approach
 Evolved from mathematical and statistical methodsEvolved from mathematical and statistical methods
developed to solve WWII military logistics and qualitydeveloped to solve WWII military logistics and quality
control problemscontrol problems
 British and American military had developed techniques usingBritish and American military had developed techniques using
math/stats to plan for attacks, convoy sizes, bombing raids,math/stats to plan for attacks, convoy sizes, bombing raids,
etc…etc…
 Focuses on improving managerial decision making byFocuses on improving managerial decision making by
applying:applying:
 Statistics, optimization models, information models, andStatistics, optimization models, information models, and
computer simulationscomputer simulations
 Computers do most of this work todayComputers do most of this work today
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–11
Exhibit 2–5 What Is Quality Management?Exhibit 2–5 What Is Quality Management?
Quality management ensures that an organization,
product or service is consistent. 
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–12
Understanding OrganizationalUnderstanding Organizational
BehaviorBehavior
• Organizational Behavior (OB)Organizational Behavior (OB)
 People are the MOST important asset of an People are the MOST important asset of an 
organization or firm (True or False?)organization or firm (True or False?)
Cont….Cont….
• Organizational  Behavior Organizational  Behavior  is  a  field  of  study  that is  a  field  of  study  that 
investigates the impact that investigates the impact that  individuals, groups, individuals, groups, 
and  structure  have  on  behavior  within and  structure  have  on  behavior  within 
organizations organizations  for  the  purpose  of  applying  such for  the  purpose  of  applying  such 
knowledge  towards  improving  an  organization's knowledge  towards  improving  an  organization's 
effectiveness.effectiveness.
• OB is concerned with OB is concerned with “the study of the structure,“the study of the structure,
• functioning and performance of organizations, functioning and performance of organizations, 
and the behavior of groups and individuals and the behavior of groups and individuals 
within them”within them”. Pugh (1971). Pugh (1971)
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–13
Major Contributing DisciplinesMajor Contributing Disciplines
to the field of OBto the field of OB
1. Psychology: 1. Psychology: how individuals behave in response how individuals behave in response 
to a stimulus.to a stimulus.
2. Sociology: 2. Sociology: how individuals relate to groups and to how individuals relate to groups and to 
each other.each other.
3. Social Psychology: 3. Social Psychology: How individuals and How individuals and 
organizations perceive conflict, threats and undergo organizations perceive conflict, threats and undergo 
stress.stress.
4. Anthropology: 4. Anthropology: understanding customs traditions understanding customs traditions 
and social mores of people since the organization is and social mores of people since the organization is 
a microcosm of the larger society.a microcosm of the larger society.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–14
Cont….Cont….
5. Political Science: 5. Political Science: Understanding Power, Authority Understanding Power, Authority 
and Corporate Politics.and Corporate Politics.
6.  Economics: 6.  Economics:  Appreciating  monetary  (wage  and Appreciating  monetary  (wage  and 
bonus)  and  non  monetary  incentives  (housing, bonus)  and  non  monetary  incentives  (housing, 
schooling  and  medical  care)  to  employees  so  that schooling  and  medical  care)  to  employees  so  that 
they  are  motivated  to  produce  more  efficiently  and they  are  motivated  to  produce  more  efficiently  and 
effectively.effectively.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–15
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–16
•A series of productivity experiments conductedA series of productivity experiments conducted
at Western Electric from 1924 to 1932.at Western Electric from 1924 to 1932.
•Experimental findingsExperimental findings
Productivity unexpectedly increased under imposedProductivity unexpectedly increased under imposed
adverse working conditions.adverse working conditions.
The effect of incentive plans was less thanThe effect of incentive plans was less than
expected.expected.
•Research conclusionResearch conclusion
Social norms, group standards and attitudes moreSocial norms, group standards and attitudes more
strongly influence individual output and work behaviorstrongly influence individual output and work behavior
than do monetary incentives.than do monetary incentives.
The Hawthorne StudiesThe Hawthorne Studies
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–17
Exhibit 2–7 The Organization as an OpenExhibit 2–7 The Organization as an Open
SystemSystem
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–18
Implications of the SystemsImplications of the Systems
ApproachApproach
• Coordination of the organization’s parts isCoordination of the organization’s parts is
essential for proper functioning of the entireessential for proper functioning of the entire
organization.organization.
• Decisions and actions taken in one area of theDecisions and actions taken in one area of the
organization will have an effect in other areas oforganization will have an effect in other areas of
the organization.the organization.
• Organizations are not self-contained and,Organizations are not self-contained and,
therefore, must adapt to changes in theirtherefore, must adapt to changes in their
external environment.external environment.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–19
The Contingency ApproachThe Contingency Approach
• Contingency Approach DefinedContingency Approach Defined
 Also sometimes called theAlso sometimes called the situational approach.situational approach.
 There is no one universally applicable set ofThere is no one universally applicable set of
management principles (rules) by which to managemanagement principles (rules) by which to manage
organizations.organizations.
 Organizations are individually different, face differentOrganizations are individually different, face different
situations (contingency variables), and requiresituations (contingency variables), and require
different ways of managing.different ways of managing.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–20
Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular Contingency Variables
• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.

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Management History and Approaches

  • 1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–1 Management HistoryManagement History Management Stephen P. Robbins Mary Coulter tenth edition
  • 2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–2 Learning OutcomesLearning Outcomes Follow this Learning Outline as you read and studyFollow this Learning Outline as you read and study this chapter.this chapter. 2.1 Historical Background Of Management. 2.2 Classical Approach.Classical Approach. 2.3 Quantitative Approach. 2.4 Behavioral Approach 2.5 Contingency/Contemporary Approach
  • 3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–3 Historical Background ofHistorical Background of ManagementManagement • Ancient ManagementAncient Management  Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)  Venetians (floating warship assembly lines)Venetians (floating warship assembly lines) • Adam SmithAdam Smith  PublishedPublished The Wealth of NationsThe Wealth of Nations in 1776in 1776 • Industrial RevolutionIndustrial Revolution
  • 4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–4 Exhibit 2–1 Major Approaches to ManagementExhibit 2–1 Major Approaches to Management
  • 5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Scientific ManagementScientific Management • Fredrick Winslow TaylorFredrick Winslow Taylor  The “father” of scientific managementThe “father” of scientific management  PublishedPublished Principles of Scientific ManagementPrinciples of Scientific Management (1911)(1911) Says “Management is a science. There is one best way and one best person to do the task. I love efficiency and I love to study people at work. Management should be an academic discipline.” (He had a point…) His work influenced: Bringing psychology into the workplace Gantt Chart and planning Harvard University Offering Management Degree
  • 6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–6 Exhibit 2–2 Taylor’s Scientific Management PrinciplesExhibit 2–2 Taylor’s Scientific Management Principles 1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.
  • 7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–7 General Administrative TheoryGeneral Administrative Theory • Henri FayolHenri Fayol  Principles of ManagementPrinciples of Management • Max WeberMax Weber  Developed a theory of authority based on an idealDeveloped a theory of authority based on an ideal type of organization (bureaucracy)type of organization (bureaucracy)  Emphasized rationality, predictability, impersonality, technicalEmphasized rationality, predictability, impersonality, technical competence, and authoritarianismcompetence, and authoritarianism
  • 8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–8 Exhibit 2–3 Fayol’s 14 Principles ofExhibit 2–3 Fayol’s 14 Principles of ManagementManagement 1.1. Division of workDivision of work 2.2. AuthorityAuthority 3.3. DisciplineDiscipline 4.4. Unity of commandUnity of command 5.5. Unity of directionUnity of direction 6.6. Subordination ofSubordination of individual interestsindividual interests to the generalto the general interestinterest 7.7. RemunerationRemuneration 8.8. CentralizationCentralization 9.9. Scalar chainScalar chain 10.10. OrderOrder 11.11. EquityEquity 12.12. Stability of tenureStability of tenure of personnelof personnel 13.13. InitiativeInitiative 14.14. Esprit de corpsEsprit de corps
  • 9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–9 Exhibit 2–4Exhibit 2–4 Weber’s BureaucracyWeber’s Bureaucracy
  • 10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–10 Quantitative Approach toQuantitative Approach to ManagementManagement • Quantitative ApproachQuantitative Approach  Evolved from mathematical and statistical methodsEvolved from mathematical and statistical methods developed to solve WWII military logistics and qualitydeveloped to solve WWII military logistics and quality control problemscontrol problems  British and American military had developed techniques usingBritish and American military had developed techniques using math/stats to plan for attacks, convoy sizes, bombing raids,math/stats to plan for attacks, convoy sizes, bombing raids, etc…etc…  Focuses on improving managerial decision making byFocuses on improving managerial decision making by applying:applying:  Statistics, optimization models, information models, andStatistics, optimization models, information models, and computer simulationscomputer simulations  Computers do most of this work todayComputers do most of this work today
  • 11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–11 Exhibit 2–5 What Is Quality Management?Exhibit 2–5 What Is Quality Management? Quality management ensures that an organization, product or service is consistent.  Intense focus on the customer Concern for continual improvement Process-focused Improvement in the quality of everything Accurate measurement Empowerment of employees
  • 12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–12 Understanding OrganizationalUnderstanding Organizational BehaviorBehavior • Organizational Behavior (OB)Organizational Behavior (OB)  People are the MOST important asset of an People are the MOST important asset of an  organization or firm (True or False?)organization or firm (True or False?)
  • 13. Cont….Cont…. • Organizational  Behavior Organizational  Behavior  is  a  field  of  study  that is  a  field  of  study  that  investigates the impact that investigates the impact that  individuals, groups, individuals, groups,  and  structure  have  on  behavior  within and  structure  have  on  behavior  within  organizations organizations  for  the  purpose  of  applying  such for  the  purpose  of  applying  such  knowledge  towards  improving  an  organization's knowledge  towards  improving  an  organization's  effectiveness.effectiveness. • OB is concerned with OB is concerned with “the study of the structure,“the study of the structure, • functioning and performance of organizations, functioning and performance of organizations,  and the behavior of groups and individuals and the behavior of groups and individuals  within them”within them”. Pugh (1971). Pugh (1971) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–13
  • 14. Major Contributing DisciplinesMajor Contributing Disciplines to the field of OBto the field of OB 1. Psychology: 1. Psychology: how individuals behave in response how individuals behave in response  to a stimulus.to a stimulus. 2. Sociology: 2. Sociology: how individuals relate to groups and to how individuals relate to groups and to  each other.each other. 3. Social Psychology: 3. Social Psychology: How individuals and How individuals and  organizations perceive conflict, threats and undergo organizations perceive conflict, threats and undergo  stress.stress. 4. Anthropology: 4. Anthropology: understanding customs traditions understanding customs traditions  and social mores of people since the organization is and social mores of people since the organization is  a microcosm of the larger society.a microcosm of the larger society. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–14
  • 15. Cont….Cont…. 5. Political Science: 5. Political Science: Understanding Power, Authority Understanding Power, Authority  and Corporate Politics.and Corporate Politics. 6.  Economics: 6.  Economics:  Appreciating  monetary  (wage  and Appreciating  monetary  (wage  and  bonus)  and  non  monetary  incentives  (housing, bonus)  and  non  monetary  incentives  (housing,  schooling  and  medical  care)  to  employees  so  that schooling  and  medical  care)  to  employees  so  that  they  are  motivated  to  produce  more  efficiently  and they  are  motivated  to  produce  more  efficiently  and  effectively.effectively. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–15
  • 16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–16 •A series of productivity experiments conductedA series of productivity experiments conducted at Western Electric from 1924 to 1932.at Western Electric from 1924 to 1932. •Experimental findingsExperimental findings Productivity unexpectedly increased under imposedProductivity unexpectedly increased under imposed adverse working conditions.adverse working conditions. The effect of incentive plans was less thanThe effect of incentive plans was less than expected.expected. •Research conclusionResearch conclusion Social norms, group standards and attitudes moreSocial norms, group standards and attitudes more strongly influence individual output and work behaviorstrongly influence individual output and work behavior than do monetary incentives.than do monetary incentives. The Hawthorne StudiesThe Hawthorne Studies
  • 17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–17 Exhibit 2–7 The Organization as an OpenExhibit 2–7 The Organization as an Open SystemSystem
  • 18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–18 Implications of the SystemsImplications of the Systems ApproachApproach • Coordination of the organization’s parts isCoordination of the organization’s parts is essential for proper functioning of the entireessential for proper functioning of the entire organization.organization. • Decisions and actions taken in one area of theDecisions and actions taken in one area of the organization will have an effect in other areas oforganization will have an effect in other areas of the organization.the organization. • Organizations are not self-contained and,Organizations are not self-contained and, therefore, must adapt to changes in theirtherefore, must adapt to changes in their external environment.external environment.
  • 19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–19 The Contingency ApproachThe Contingency Approach • Contingency Approach DefinedContingency Approach Defined  Also sometimes called theAlso sometimes called the situational approach.situational approach.  There is no one universally applicable set ofThere is no one universally applicable set of management principles (rules) by which to managemanagement principles (rules) by which to manage organizations.organizations.  Organizations are individually different, face differentOrganizations are individually different, face different situations (contingency variables), and requiresituations (contingency variables), and require different ways of managing.different ways of managing.
  • 20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–20 Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular Contingency Variables • Organization size • As size increases, so do the problems of coordination. • Routineness of task technology • Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or non-routine technologies. • Environmental uncertainty • What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. • Individual differences • Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.

Editor's Notes

  1. It has four main components: quality planning, quality assurance, quality control and quality improvement.